How to Measure Employee Engagement in 6 Steps (2025)

Measuring employee engagement is essential for building a motivated, high-performing team. 

At TapWell, we’ve helped multiple companies enhance their engagement strategies through data-backed methods like eNPS, surveys, and real-time feedback.

In this guide, you’ll learn the most effective ways to measure engagement, including surveys, eNPS, one-on-one conversations, and behavior tracking. 

We’ll also cover key metrics to monitor, tools to use, and how to track progress over time. 

Whether you’re an HR leader or business owner, these insights will help you spot issues early, improve retention, and boost overall team performance.

What does employee engagement really mean?

Employee engagement means how connected and committed your employees feel to their work and your company. It’s not just about whether they like their job; it’s about whether they care enough to go the extra mile. 

An engaged employee is excited to start their day, contributes fresh ideas, and supports the team even when things get tough. They don’t just work for a paycheck; they work with pride and purpose.

Explore our free employee engagement tools:

• Employee Productivity Calculator
• Annual Employee Turnover Rate (%) Calculator

Why You Should Measure Employee Engagement

Here’s a TL;DR of why every organization should measure employee engagement:

1. Spot Problems Early

Measuring employee engagement helps you identify and address problems before they become serious. If people feel stressed, undervalued, or disconnected from their work, you can identify these issues through surveys or feedback. This enables you to take prompt action and implement improvements before employees lose motivation or consider leaving the company.

2. Keep Your Best People

Engaged employees are more likely to stay with your company. When people feel heard, appreciated, and supported, they develop a stronger sense of loyalty. Regularly measuring engagement helps you understand what your top talent needs to stay happy and motivated, reducing the risk of unexpected resignations.

3. Boost Team Performance

Teams with high engagement levels work more efficiently and collaborate better. They take initiative, help each other, and strive to achieve common goals. By measuring engagement, you can identify which teams are performing well and which may require additional support, training, or recognition to excel.

4. Build a Better Workplace Culture

When employees see that their opinions are valued and lead to change, it creates a culture of trust and openness. Measuring engagement sends a clear message: leadership cares about the people behind the work. This builds a more positive, inclusive, and respectful environment where people feel proud to contribute.

5. Improve Business Results

Employee engagement is closely linked to business success. Engaged employees are more productive, provide better customer service, and contribute more creative ideas. When you track engagement regularly, you’re not just improving how people feel; you’re directly supporting growth, profitability, and long-term stability for your company.

How to Measure Employee Engagement (Step-by-Step)

Step 1: Start with an Employee Engagement Survey

The first step in understanding how your employees feel is to ask them directly. An employee engagement survey helps you collect honest feedback about their work experience, from team dynamics to growth opportunities. When done well, surveys reveal what’s boosting morale and what’s quietly bringing it down.

To make it effective, keep the questions clear, short, and jargon-free. Focus on key areas like motivation, communication, leadership support, and recognition. Here are some examples:

• Do you feel proud to work here?
• Does your manager appreciate your contributions?
• Do you have the necessary tools to perform your job effectively?
• Do you see yourself growing in this company?

Use tools like Google Forms, SurveyMonkey, Officevibe, or Typeform to easily send and analyze surveys.

Step 2: Measure Employee Net Promoter Score (eNPS)

The eNPS is a quick yet powerful tool to gauge how loyal and satisfied your team is. All it takes is one question:

“On a scale of 0 to 10, how likely are you to recommend this company as a great place to work?”

Employees who give a score of 9 or 10 are considered Promoters; they love working with you. Scores of 7–8 are Passives, while 0–6 are Detractors, who may be unhappy or disengaged.

To calculate your score, subtract the percentage of detractors from the percentage of promoters. A score above 30 means you’re doing well; anything below zero means it’s time for action.

Step 3: Hold One-on-One Conversations

Surveys are useful, but they can’t replace a good conversation. One-on-one check-ins between managers and team members create space for open, personal discussions. In these conversations, employees can share their experiences, voice their concerns, and discuss their goals without the pressure of a group setting.

Ask questions like:

• How are you feeling about your role?
• Is anything making your work more difficult than it should be?
• How can we support your growth or learning journey?

These chats demonstrate to employees that their opinions matter, and often reveal insights that surveys overlook.

Step 4: Observe Everyday Behavior and Team Participation

Engagement isn’t just about what people say; it shows up in how they act. Watch how employees interact during meetings, respond to challenges, and participate in employee engagement team activities. High engagement often looks like enthusiasm, helpfulness, and new ideas. Low engagement might show as frequent absences, missed deadlines, or a lack of energy.

By paying close attention to everyday behavior, you can spot disengagement early, even among those who don’t speak up.

Step 5: Collect Quick Feedback After Events

After every internal event, such as a wellness day, team lunch, or award ceremony, send out a brief feedback survey to gather input. Ask simple questions like:

• Did you enjoy the event?
• Did it make you feel appreciated?
• Would you like more of these?

These quick pulse surveys help you measure the emotional impact of engagement activities. If employees respond positively, you know you’re on the right track. If not, it’s a cue to rethink future plans.

Step 6: Track Progress Over Time

Employee engagement isn’t a one-time measurement. It evolves with company changes, leadership styles, and workplace culture. That’s why it’s essential to track results over time, on a monthly, quarterly, or biannual basis.

Use a dashboard or spreadsheet to log survey scores, eNPS ratings, and feedback highlights. Compare results across teams or time periods and look for patterns, such as dips after a policy change or improvements after a new manager joins.

Don’t forget to celebrate small wins. If one department improves its engagement score, share what they did and encourage others to try the same.

👉 Here’s a chart visualizes six common ways to measure employee engagement based on how much effort they require and how much impact they deliver:

Key employee engagement metrics to track

Here are the employee engagement metrics—ranked by importance:

1. Employee Net Promoter Score (eNPS)

This score shows how likely your employees are to recommend your company as a place to work. A high eNPS means your team feels happy and loyal. A low score signals disengagement and possible issues with trust or satisfaction.

2. Employee Retention Rate

This measures the percentage of employees who stay with your company over time. High retention usually means people feel valued and engaged. A sudden drop may indicate deeper issues, such as low morale or a lack of career growth opportunities.

3. Absenteeism Rate

This indicates the frequency of employee absences. Frequent absences may be a sign of stress, burnout, or low motivation. Tracking this helps you spot problems before they get worse.

4. Participation in Surveys and Activities

If employees regularly participate in surveys, training sessions, or team events, it demonstrates their commitment to involvement. Low participation may indicate that they feel disconnected or unsure whether their voice matters.

5. Response Rate to Feedback Requests

A high response rate means employees are willing to share their thoughts and trust that their feedback will lead to action. A low response rate can suggest a lack of confidence in leadership or the belief that nothing will change.

6. Recognition and Rewards Frequency

This measures how often employees are recognized and appreciated by their managers or peers. Regular recognition builds a positive culture and boosts morale. If this metric is low, people may feel unnoticed or undervalued.

7. Manager Effectiveness Ratings

Feedback on managers gives you insight into how well leaders support and motivate their teams. Strong, empathetic leadership often leads to higher engagement, while poor management can lead to frustration and turnover.

8. Training and Development Participation

Tracking the number of employees participating in learning and development programs helps you identify who is interested in growth. High participation often means employees feel invested in their careers and the company’s future.

9. Internal Mobility Rate

This shows how often employees move into new roles or get promoted. A strong internal mobility rate means people are growing within the company, which keeps them engaged and loyal.

How Corporate Gifting Can Increase Employee Engagement

1. It shows you care

Everyone wants to feel appreciated. When you surprise your team with a thoughtful gift—whether it’s a welcome kit, birthday surprise, or festive hamper—it tells them, “You matter here.” That simple gesture can make people feel more connected and motivated to give their best.

2. It recognizes effort in a memorable way

A thank-you note is nice, but pairing it with a small reward can make a big difference. Recognizing people with gifts—after a big project, a great quarter, or even a tough week—shows that you notice the effort. It encourages a culture where people feel seen and supported.

3. It brings teams closer

Shared celebrations—like holiday gifting or team wins—help people bond. Even in remote teams, a well-chosen gift can spark conversations, inside jokes, and a sense of belonging. That’s the kind of connection that keeps people engaged long-term.

4. It supports wellbeing and balance

Gifts that focus on self-care—like wellness kits, desk plants, or hobby boxes—send a strong message: “We care about you, not just your output.” When people feel their wellbeing is valued, they’re more likely to stay happy, healthy, and engaged at work.

5. It helps you retain great people

Engaged employees don’t just perform better—they stay longer. When people feel appreciated and connected, they’re less likely to look elsewhere. Thoughtful gifting can be one of the easiest ways to boost morale, build loyalty, and reduce churn.

How TapWell can help you improve the employee engagement level

At TapWell, we believe recognition fuels motivation. A well-timed, thoughtful gift can make employees feel seen, valued, and connected to the company. That’s why we offer a wide range of curated gifting solutions from festive hampers and welcome kits to personalized gift stores and milestone rewards.

Our tech-enabled platform enables HR teams to automate gifting across multiple locations easily. Employees can even redeem reward points on a branded gift store tailored to your company. 

With over 4,300 customizable products and eco-friendly packaging options, TapWell helps you match gifts to your values and budget.

When HPCL planned a dealer meet, they approached TapWell for premium, eco-conscious gifts. We curated a wellness-themed set featuring an aroma diffuser, a humidifier, and sustainable jute bag packaging. 

The gifts struck the perfect balance between utility and sophistication. The event received overwhelmingly positive feedback, and HPCL appreciated the seamless coordination, from curation to doorstep delivery.

FAQs

What tools are best for measuring employee engagement?

The best tools for measuring employee engagement include Gallup Q12, Culture Amp, Officevibe, and SurveyMonkey. These platforms offer customizable surveys, analytics dashboards, and automated reporting to track engagement trends over time.

Why is employee engagement measurement important?

Measuring employee engagement is important because it identifies morale issues, predicts retention risks, and guides performance improvements. High engagement correlates with better productivity, lower turnover, and stronger company culture.

How often should employee engagement be measured?

Measure employee engagement quarterly for trend tracking and yearly for deep analysis. Frequent pulse surveys help detect issues early, while annual reviews provide long-term insights into workplace satisfaction and performance.